WE’VE probably all heard the term ‘innovation’ to describe a new product.

In Orchard Valley Foods' case this would be food decoration orientated but it extends to any product or process. We’re told it’s critical to innovate to stay competitive and win new markets, so what is Innovation?

Innovation is the process of taking an idea through to an improved commercial situation. This will hopefully lead to new sales or better profits, ideally both. Innovation usually relates to modifying an existing product or process. Something entirely new to the market is an ‘invention’.

From a small business perspective, like ourselves, we seek to innovate for a number of reasons: bringing a novel product to market; increase our manufacturing efficiency; improve our profitability and keep ahead of our competitors.

The innovation process can be short, taking a couple of weeks for a recipe modification, or much longer if new equipment is required. The cost of the development time, equipment, new packaging and getting the product ready for market can be costly with no guarantee of success.

Cost can be expended without any eventual sales – this is a risk and often stops companies being innovative.

However if a company is not innovating to avoid the risk and possible cost it will not be getting the benefits described earlier.

I would encourage all businesses to innovate within their means. If a company lacks the resource and funds to follow an innovation strategy there are a number of grants available to support the process. If the final product or process qualifies under the HMRC ‘Research and Development’ definition generous tax credits can be claimed.

I would also ask the government to be more supportive of businesses to help them compete in world markets.

Innovating stops a company standing still. If a company is standing still your competitors and customers will leave you behind.